Foreclosures To Flood South Florida Housing Market?

As we have discussed, the inventory levels of homes on the market seems to be dwindling in South Florida.  According to an article in the Sun-Sentinel, listings have dropped by about 50% from a year ago.  The article went on to say large investment firms are investing millions of dollars in distressed properties in the South Florida market.  The result has been a rise in prices. 

We have wondered about the possibility that more foreclosures will potentially disrupt the upward trend of home price in the South Florida market.  The Sun-Sentinel quoted RealtyTrac as saying there are currently 56,000 homes in Palm Beach and Broward counties that are in the "shadow inventory."  The "shadow inventory" has not yet been introduced for sale onto the market.

Some experts believe the banks will not rush to bring many foreclosed homes on the market as to not ruin the positive price momentum.  Also, the continued interest by the large investment firms will most likely shut out individual buyers to those institutional investors who are buying homes in bulk.  The result may be a continued shortage of homes.

One of the important trends to follow is the number of distressed properties that hit the market during the current calendar year.  If the banks hold back inventory of foreclosures and/or institutional investors continue to target the South Florida housing market, we could continue to see tight inventory levels.  However, if the banks begin to increase the number of foreclosed properties being introduced into the market, prices could level-out or even decrease.

I take an analytical approach to buying, selling and leasing real estate. I work with families, people looking for a rental home, a second home, investors, etc. As a Realtor, I am aware of trends in the domestic market, as well as in the local markets throughout South Florida. If you are thinking of selling or buying a home, please feel free text me or call me at 561-247-3550.


For free home searches, please text me your name, e-mail address and phone number or visit my Web-site at http://homes.MYsouthFLrealestate.com

Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Member of Who's Who in Luxury Real Estate
Lang Realty
561-247-3550

An Analytical Approach To Buying, Selling and Leasing Real Estate

http://MYsouthFLrealestate.com

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